KPMG strengthens System of Quality Management framework to drive continuous audit quality improvement in Hong Kong

Empowering people with technology to deliver high-quality audits and strengthen public trust

HONG KONG, June 17, 2026 /PRNewswire/ -- KPMG today announced the release of its Hong Kong Audit Quality Report 2025, outlining plans to strengthen its System of Quality Management (SOQM) framework to drive continuous improvement across all audit engagements. The report also highlights how the firm continues to strengthen audit quality through innovation, digital transformation, and investment in its people. Together, these efforts demonstrate KPMG's commitment to delivering high-quality audit and assurance services that support confidence in the capital markets and reinforce public trust.

Audit quality remains fundamental to KPMG's ambition to be the most trusted and trustworthy professional services organisation. As technological advances continue to reshape the business landscape, KPMG is transforming its audit practice through the strategic integration of artificial intelligence (AI), data analytics, and innovative digital solutions, while maintaining the highest standards of professional excellence, ethics, and integrity.

The report highlights significant enhancement in the firm's digital transformation journey as part of the Global Quality Framework. During the year, KPMG expanded the functionality of its Audit Application Platform (AAP), a centralised digital hub that connects audit solutions, workflow monitoring, and support services. The firm also developed and deployed innovative audit applications, including KPMG Clara AI Chat, which enables auditors to interrogate audit documentation, access KPMG's knowledge base, and benefit from generative AI-powered coaching and productivity enhancements. In addition, KPMG's Vouching Platform was introduced to improve audit quality through a standardised workflow and enhanced control points for audit procedures. These developments form part of KPMG's broader commitment to responsible AI adoption under its Trusted AI framework.

While technology continues to transform the audit profession, KPMG recognises that people remain at the heart of every audit. Through its firm-wide Digitalisation of Audit programme, the firm is investing in developing future-ready audit professionals by enhancing data literacy, AI prompt engineering capabilities and technology confidence across all levels of the audit practice. KPMG has continued to recruit specialised talent, including data scientists, while also expanding initiatives such as its Audit Tech Pioneers programme, AI-chat hackathons, and innovation competitions to encourage continuous learning and innovation. During 2025, the firm delivered more than 110 technology workshops and coaching sessions in Hong Kong, helping to upskill more than 3,400 professionals on the latest audit technologies and digital solutions.

The report also underscores KPMG's continued focus on fostering a strong culture of quality. Towards the end of 2025, the firm held an Audit Quality Week, bringing together more than 600 audit professionals across Hong Kong through a series of in-person and virtual activities designed to reinforce quality-focused behaviours ahead of the audit peak season. The programme increased awareness of key themes emerging from internal and external inspections, highlighted the firm's quality initiatives, and encouraged reflection on lessons learned from previous audits.

KPMG's commitment to quality is further reflected in the results of its latest Global People Survey. The survey found that 98 percent of respondents agreed that the commitment to quality is apparent in what we do on a day-to-day basis, while 99 percent agreed that the culture and tone set by leadership prioritise the importance of audit quality. These findings demonstrate the strength of KPMG's SOQM and the firm's ongoing commitment to continuous improvement.

Ivy Cheung, Senior Partner in Hong Kong SAR and Vice Chairman of KPMG China, says: "Trust is the foundation of well-functioning capital markets, and audit quality is fundamental to earning and maintaining that trust. As the business environment continues to evolve, we are investing in innovation and strengthening our governance frameworks to deliver audits that are transparent, reliable, and of the highest quality. We also value the perspectives of our key stakeholders and actively seek and act on their feedback, which helps us continuously enhance our audit and assurance quality, and respond to the evolving needs of the market."

Wilson Lee, Head of Audit, Hong Kong SAR, KPMG China, says: "While technology is transforming the audit profession, people remain at the heart of every audit. Through our Digitalisation of Audit programme and continued investment in upskilling, we are equipping our professionals with the skills and confidence to harness emerging technologies responsibly and effectively. Guided by our Values, our people are united by a commitment to integrity, collaboration, and quality, creating a culture that drives continuous improvement and innovation across our audit practice."

To learn more about KPMG's initiatives and investments in audit quality, download the Audit Quality Report 2025.

About KPMG
KPMG in China has offices located in 31 cities with over 14,000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi'an, Zhengzhou, Hong Kong SAR and Macau SAR. It started operations in Hong Kong in 1945. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. In 2012, KPMG became the first among the "Big Four" in the Chinese Mainland to convert from a joint venture to a special general partnership.

KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited ("KPMG International") operate and provide professional services. "KPMG" is used to refer to individual member firms within the KPMG organisation or to one or more member firms collectively.

KPMG firms operate in 138 countries and territories with more than 276,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.

SOURCE KPMG